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JPM Asset Mgmt: Low Correlation Between A-shrs and US Mkt Diversifies Risk; US Likely to Cut Rates by 50 Bps Next Yr
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Tai Hui, Chief Market Strategist for Asia Pacific at JPMorgan Asset Management, anticipates that the US will cut interest rates by 25 bps in December and by 50 bps in 2026. He also expects the upcoming change in the Federal Reserve Chairman to be more dovish compared to Powell.

Hui suggested investors maintain diversified asset allocation, believing that stocks in the Asia-Pacific region will benefit from AI demand and China's new five-year plan, including Taiwanese and Japanese stock markets.

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In addition, the low correlation between A-shares and the US market helps diversify risk, Hui stressed. Investors should pay attention to US banking, financial, and power stocks.
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